This bill introduces a cost of living adjustment (COLA) for members of the New Hampshire retirement system who have been retired for at least 60 months as of July 1, 2025. Specifically, it amends RSA 100-A by adding a new section, 100-A:41-f, which stipulates that eligible retired members or their beneficiaries will receive a supplemental allowance of 1.5% of their annual retirement allowance, capped at the first $50,000. This adjustment will be effective on the first anniversary date after July 1, 2026, and will become a permanent addition to the beneficiary's base retirement allowance. The funding for this supplemental allowance will be sourced from the state annuity accumulation fund, as determined by the retirement system's actuary.

The bill does not provide any new funding or positions and is projected to have a fiscal impact, with estimated expenditures of $1,570,000 for the state and $6,620,000 for political subdivisions by FY 2028. The actuarial analysis indicates that the proposed COLA will increase the actuarial accrued liability by approximately $100.7 million, which will be amortized over a period not exceeding 20 years. The bill is set to take effect on July 1, 2025, and includes no deletions from current law.